SPRINGFIELD-Before adjourning for the summer, state legislators quietly gave the University of Illinois at Chicago sweeping authority to develop a 30-acre expansion of its Near West Side campus free from state regulations.

While the measure passed with little debate, critics question why the university should be given rare powers to bypass established checks on taxpayer-funded agencies.

University officials pushed the legislation at the behest of private developers interested in the property, located south of Roosevelt Road and west of the Dan Ryan Expressway.

UIC wants to lure private projects-possibly including hotel, performing arts and housing facilities-to leverage what amount to private-sector subsidies for new classrooms, dormitories and other university buildings (CRAIN'S, May 27).

"This is one of the most attractive undeveloped locations in the city," says UIC Chancellor David Broski. "We are land-rich and capital-poor. Most private developers want to work with a partner that can get things done without having to jump through bureaucratic hoops."

Republican legislative leaders tucked the measure into a bill containing several non-controversial items related to higher education. University of Illinois President (and former UIC Chancellor) James Stukel personally lobbied some legislators who questioned the new powers.

Among other things, the measure would allow UIC to develop the site without seeking "the approval of any state board or agency." UIC also could use eminent domain powers to acquire any land or buildings within the 30 acres.

Other provisions give the university authority to lease portions of the property beyond the state-mandated maximum of five years or sell portions and retain the proceeds instead of sending the money to Springfield.

The state also made the project possible by earmarking $19.7 million in taxpayer funds to buy most of the land.

Critics expressed skepticism about the new strategy, given the likelihood of opposition from community groups and existing businesses. Some neighborhood merchants still are smarting from what they felt were UIC's heavy-handed efforts to relocate the area's Maxwell Street market two years ago.

Others, including some legislators and the Illinois Board of Higher Education (IBHE), question the precedent set by giving UIC such broad powers. University building projects normally require IBHE approval.

"Any time there's a bill that weakens the state's leasing and purchasing statutes, one should be very skeptical of the motives," says Rep. Jeffrey Schoenberg, D-Wilmette. "This has tremendous potential to become an asset for the university, or it could be grossly abused."

More than 1 million square feet of space costing some $100 million would be built under the plan that university officials envision.

UIC's request for qualifications from developers generated responses from nine firms, including Stein & Co. and John Buck Co. University officials are expected to winnow the list to three finalists and select the winner within the next two months.

UIC officials lobbied hard for the development proposal during the waning hours of the spring legislative session. Among the calls that House Speaker Lee Daniels, R-Elmhurst, received asking for support was one from his former chief of staff, Mike Tristano, now a top assistant to Mr. Broski.

Those concerned that the legislation gives UIC too much power shouldn't worry, says Mr. Broski.

"If it all sounds vague, it's because we don't know exactly what can be done," he says, "but we are not going to run roughshod over everyone else in state government."